Did You Lose Money with Former JPMorgan Chase Bank, Na Broker Trevor Rahn?
Posted on Wednesday, October 30th, 2019 at 10:08 am
Erez Law is currently investigating former JPMorgan Chase Bank, Na broker Trevor Rahn (CRD# 2196155) regarding excessive and unauthorized trading in customer accounts, including one elderly customer. Rahn was registered with JPMorgan Chase Bank, Na in Los Angeles, California from 2010 to 2018, when he was terminated regarding, “unacceptable practices by the representative relating to the timing and size of orders entered and resulting transaction charges in a client account and relating to the marking of certain orders for the account as unsolicited.”
According to public records, Rahn earned fees that were 10 times the typical amount.
In March 2021, FINRA sanctioned Rahn to pay a $10,000 civil and administrative penalty and fine and suspended him for 18 months after he, “consented to the sanctions and to the entry of findings that he failed to conduct the necessary reasonable diligence to understand the cost implications of a recommended average pricing investment strategy and, as a result, lacked a reasonable basis to recommend the strategy to his customers. The findings stated that Rahn recommended the strategy to the customers in which he executed orders in accounts by breaking them into multiple smaller trades that he entered at different times on the same day. When entering the smaller trades, Rahn often entered a separate commission on each trade that was greater than the amount that would be charged under his member firm’s standard commission schedule. Rahn relied on the firm’s system to automatically assign commissions in accordance with its commission schedule without taking steps to confirm it actually did so. In connection with his strategy, Rahn exercised time and price discretion on over 7,500 trades without the written authority from any of his customers or written acceptance from his firm. None of the tickets for the trades reflected an exercise of time and price discretion. Instead, Rahn entered all of these trades as held orders, meaning that each order was intended to be promptly placed. The findings also stated that Rahn executed trades in a customer account without her authorization. The findings also included that Rahn caused his firm to create inaccurate records by mismarking solicited trades in customer accounts as unsolicited.”
According to FINA, Rahn executed 577 unauthorized trades over a two-year span and mismarked 4,714 trades as unsolicited.
Rahn has been the subject of four customer complaints between 2016 and 2019, one of which was denied, according to his CRD report:
June 2019. “Customer alleges that the trading activity increased dramatically and resulted in losses and significant tax obligations. Activity dates January 2014-September 2015. Subsequent correspondence received on 06/12/2019. Customer alleges financial advisor engaged in a pattern of unauthorized trading and margin use in customer’s account in order to generate commissions, and resulting in losses to customer. Activity dates January 2014 – November 2015.” The customer sought $854,410 in damages and the case was settled for $549,184.
November 2018. “Customer previously alleged that the number of transactions in the account were unauthorized and that claim was settled. Subsequent correspondence received asserting additional demands related to the same account. The overall time period is 03/2014-09/2017.” The customer sought $1,137,915 in damages and the case was settled for $114,000. The case was regarding equity OTC, closed-end funds, and real estate investment trusts (REITs).
November 2017. “Customer alleges that the number of transactions was unauthorized. Activity dates 08/2017-09/2017.” The customer sought $5,000 in damages and the case was settled for $64,590. The case was regarding closed-end funds.
October 2016. “In October 2015, the administrators of a client’s estate requested the transfer and liquidation of positions that were then transferred and sold. Later, the administrators of the estate alleged that they were not made aware of the fees for liquidating the estate account and that the fees were excessive.” The customer sought $5,000 in damages and the case was settled for $57,847. The case was regarding common and preferred stocks.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, JPMorgan Chase Bank, Na may be liable for investment or other losses suffered by Rahn’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks, and insurance companies on a contingency fee basis.